Meta which owns Facebook, WhatsApp and Instagram, has been fined AUD 20 million (about RM62 million) by Australian courts for collecting user’s data as part of its VPN service. The civil lawsuit was brought by the Australian Competition and Consumer Commission(ACCC) and Meta is also ordered to pay AUD 400,000 (about RM1.2 million) in legal costs.
The judgement was related to Meta’s discontinued VPN service called Onavo which was offered sometime in 2016 to 2017. The VPN app was found to be collecting users’ location, time and frequency using other smartphone apps, and websites for Meta’s own advertising purposes. Onavo was advertised as a way to keep your personal information safe but it failed to make sufficient disclosure that it was collecting user data.
Judge Wendy Abraham said in a written statement, “The failure to make sufficient disclosures … may have deprived tens of thousands of Australian consumers of the opportunity to make an informed choice about the collection and use of their data before downloading and/or using Onavo Protect.” It was reported that Meta is still facing civil court action by Australia’s Office of the Information Commissioner over its dealings with Cambridge Analytica in Australia.
Last year, Australia also filed a lawsuit against Meta for failing to tackle scam ads on its platform alleging that the social network aided and abetted or was knowingly concerned in false or misleading conduct and representations by the advertisers. Recently, the Malaysian Communications and Multimedia Commission said it will also take legal action against Meta for failing to tackle scam ads, impersonation and inappropriate content.
When asked whether Malaysia is drafting tougher laws to hold social media companies accountable, Communications and Digital Minister Fahmi Fadzil said there are no plans for it at the moment and they will continue to take consistent and proactive engagement with the relevant platforms. Between January to May 2023, Malaysians have lost nearly RM330 million to scams on Facebook, Instagram and WhatsApp.
To provide better support and protection against impersonation, Meta recently rolled out its Meta Verified subscription which costs RM41.99/month in Malaysia. However, most of the scam and impersonation ads on their platform could have been avoided in the first place if Meta conducts basic checks on new advertisers and they form a local moderation team to act on user reports.
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Related reading
- Would you pay RM41.99/month to prevent scams and impersonation on Facebook and Instagram?
- Fahmi: Malaysians lost nearly RM330 mil to scams on Facebook, Instagram and WhatsApp between Jan to May 2023
- Fahmi: Malaysia has no plans to draft laws to hold social media companies accountable for fake news yet
- Malaysia takes legal action against Meta for failing to tackle Facebook scams ads, impersonation and inappropriate content
